New Casino and Hotel Could Expand to House Apartments as Well reports Abode318

(EstateNewsWire.com, November 11, 2012 ) Melbourne, Australia- The Crown’s $1 billion luxury hotel and casino will rely on residential apartment to subsidize the cost of attracting Asian “big spenders”, one executive stated.

Executive Vice President of Crown’s strategy and development, Tod Nisbet, outlined the proposal that included a diagram, which showed one-third of the tower would be devoted to apartments.
Nisbet said that the image was “conceptual framework” and was not yet considered a finalized design, while speaking to the Urban Development Institute of Australia during the annual state conference.

The presentation still holds James Packer’s push for the building to maintain its proposed height, which stretches the current limit by a full third.

At the moment, residential apartments are not allowed in the hotel that is currently approved by Barangaroo. Only 100,000 square meters of residential space is so far approved for the precinct located in the south. Changes, such as the proposed additions would require a planning amendment.

Nisbet defended the plan, stating that residential additions would serve two vital functions: "It gives it scale and it gives it presence. What we didn't want [is to] have the hotel be dwarfed by the office buildings," he said. Apartments would also help "cross-subsidize" the quality building features and staff services critical to drawing the wealthy, rising Asian middle class.

"In order to attract that market … you have to deliver a product that they like," he said.

Nisbet also claimed that analysis of sales proved that individuals did not show signs of being “put off” by living in close proximity to a casino.

Justin Brown, Chairman of CBRE, stated that a three-bedroom apartment within the complex could go for as much as $5 million. He also stated a penthouse could easily fetch $20 million.

"If [the development] is a premium offering, it will add true value,'' he said. ''If it ends up as a low-brow poker machine den, it will subtract from the value of the apartments.''

Residential agent Ewan Morton believes that a having the hotel/casino at Barangaroo would help nearby residential development.

"We sell apartments all around the northern end of Pyrmont, and the [Star] casino is right there,'' he said. ''The casino is never an issue. Particularly with the latest refurbishment, it's actually gone more upmarket."

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